Aussies Can Now Use Bitcoin to Back Their Home Loans

• Australians can now secure home loans by using Bitcoin as collateral, without selling their crypto holdings or triggering capital gains tax.
• Block Earner’s court victory removes licensing barriers, enabling BTC-backed mortgages with institutional-grade custody and flexible repayment options.

The dream of buying a home without having to sell Bitcoin has finally become a reality in Australia. A Sydney-based fintech startup, Block Earner, is now offering BTC owners the opportunity to use it as collateral for home loans.

Interestingly, this move was given the green light by the Australian Federal Court after the company won a lawsuit and was found not to require a financial services license for its product. What this means? Crypto-collateralized loans can be offered legally—and that’s big news.

Flexible Repayments, High Stakes: What You Should Know

With this new system, residents can borrow up to 80% of the property’s value, depending on the value of the BTC pledged. Interest payments can be made in Australian dollars or Bitcoin, and there’s even an interest-only option for the first four years. Furthermore, users retain their BTC assets, so they don’t have to worry about capital gains taxes on sales.

But of course, there are stringent conditions. If the value of BTC drops drastically and the loan-to-property value (LVR) ratio exceeds a threshold, borrowers have 30 days to top up their collateral. Otherwise, some of their BTC could be forcibly sold.

Furthermore, storage security is also strictly maintained through the Fireblocks platform, which has institutional custodian status—and will not lend assets to third parties.

Australia Pushes Forward While Tightening Its Crypto Grip

Market enthusiasm for this product was immediately palpable. Since its initial launch, Block Earner has received loan requests worth over A$110 million. CEO Charlie Karaboga and COO James Coombes called this a “pivotal moment” bridging traditional and digital finance. They have even begun roadshows in various cities, including Melbourne and Brisbane, in anticipation of a national launch later this year.

However, the high interest rates offered—between 9.5% and over 12%, depending on the LVR—could be a serious consideration for potential borrowers. Furthermore, if the value of BTC plummets, the risk of liquidation remains. But for crypto investors optimistic about the future of BTC, this could be an attractive way to own a home without losing their assets.

Furthermore, the Australian government is also tightening regulations in the crypto sector. Last March, as we covered, the government decided to focus on regulating digital assets instead of creating a national crypto reserve. The goal is clear: transparency and security. However, many worry that this increasingly stringent regulation will actually slow down the pace of innovation.

Furthermore, the CNF previously reported that last May, AUSTRAC fined the crypto platform Cointree A$75,120 for late reporting of suspicious activity. Cointree had already filed its own report and cooperated with the investigation. Nevertheless, the authority still enforced the sanction to ensure compliance standards are maintained in the sector.

Furthermore, a study conducted last February found that approximately 32.5% of Australians have owned cryptocurrency. In fact, 42.9% believe that crypto will be widely accepted in the future. Awareness levels are also very high, with 95% of respondents familiar with at least one crypto asset.

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